Angelini closed its $4.1 billion deal for Catalyst Pharmaceuticals NASDAQ:CPRX, valuing the company at about 9 times estimated 2026 EBITDA. NEW YORK, July 15, 2026, 10:06 EDT
- Catalyst wrapped up the merger before the market opened on Wednesday. Investors in Catalyst will get $31.50 per share in cash.
- Management at Catalyst estimated net cash of $861 million as of June 30, which amounts to 21% of the stated equity price.
- That estimate puts the implied operating value at around $3.24 billion, or about 9.0 times expected 2026 adjusted EBITDA.
Angelini Pharma wrapped up its $4.1 billion takeover of Catalyst Pharmaceuticals, Inc. NASDAQ:CPRX before the U.S. market opened Wednesday, taking the rare-disease drugmaker private. That price tag overstates the real cost. Stripping out Catalyst’s estimated net cash, the deal gives an enterprise value around $3.24 billion, or about 9 times expected 2026 adjusted EBITDA—a measure of operating profit before interest, tax, depreciation and amortization.
Catalyst (CPRX) shares had baked in the outcome before the news. The stock finished Tuesday at $31.49—just a penny under the buyout price in cash. Trading stopped following the after-hours move. Shares are set to be suspended on Thursday. Former holders won’t have any stake in any of the internal growth Catalyst projected.
The way the deal is financed means the cash adjustment matters when looking at this transaction alongside other pharma takeovers. Catalyst’s proxy said Angelini can use both financing proceeds and the cash Catalyst has at closing. Management guessed net cash was $861 million as of June 30, which includes projected second-quarter free cash flow, but that number is a management estimate, not a final closing figure.
| Calculation | Amount | Multiple or comparison |
|---|---|---|
| Announced equity value | $4.100 billion | 11.4 times expected 2026 adjusted EBITDA |
| Less estimated net cash | $0.861 billion | 21% of the equity value |
| Implied operating value | $3.239 billion | 5.1 times 2026 revenue; 9.0 times 2026 adjusted EBITDA |
| Same value on 2027 forecast | $3.239 billion | 4.5 times revenue; 7.0 times adjusted EBITDA |
Catalyst’s latest quarter shows what’s behind the profit multiple, even with just 5.6% growth in headline product sales. Revenue from Firdapse and Agamree climbed 28.2% to $135.6 million, but Fycompa sales dropped 61.3% after the epilepsy drug lost exclusivity. Operating income was up 15.6%. The royalty rate on U.S. Firdapse sales moved down to 6% from a top level of 18.5%, giving a boost to the unit’s ability to generate cash.
Catalyst’s board used a merger scenario that showed $635 million in revenue and $359 million in adjusted EBITDA after stock comp for 2026. Management expected revenue to reach $983 million by 2030, with most of the gains from Firdapse and Agamree. The board did not risk-adjust these projections.
| Management forecast, $ millions | 2026 | 2030 | 2035 |
|---|---|---|---|
| Firdapse sales | 455 | 688 | 360 |
| Agamree sales | 145 | 280 | 344 |
| Fycompa sales | 35 | 14 | 11 |
| Total sales | 635 | 983 | 715 |
| Adj. EBITDA incl. stock comp | 359 | 697 | 573 |
Firdapse is expected to bring in about 72% of revenue in 2026, with Agamree at 23%. The model sees annual revenue growing around 11.5% through 2030 and adjusted EBITDA margin getting up from 57% to 71%. Fycompa drops to just $14 million. Even with three drugs, most of this deal was for two main franchises.
J.P. Morgan Securities, part of JPMorgan Chase & Co. NYSE:JPM, put Catalyst’s discounted-cash-flow value between $29 and $33.50 a share. The agreed $31.50 per share is just 25 cents above the midpoint. The proxy statement also listed seven analyst targets with a $35 median, which is about 11% higher than the deal price. The sale landed above J.P. Morgan’s mid-range number but below what analysts had in mind.
At the May announcement, Catalyst CEO Rich Daly called the deal “immediate and certain cash value” for shareholders. Angelini chief Sergio Marullo di Condojanni said buying Catalyst would help the Italian group become a “relevant global player in neurological rare diseases.” Catalyst also gives Angelini a U.S. cash flow with high margins, fueling Angelini’s push to expand. Angelini Pharma
The outlook isn’t without issues. Management had already cut its March forecast from what it projected in December, blaming weaker Firdapse uptake, a possible new Medicare rebate, more generic competition, and the risk the SUMMIT trial for Agamree wouldn’t back a wider label. According to the same model, Firdapse sales are set to decline 51% in 2035 and total revenue to fall 34% that year. The purchase price multiple of 9.0 times also changes depending on where cash ends up.
Former Catalyst holders are set to get $31.50 per share. Angelini’s returns now hinge on Firdapse cash flows and scaling up Agamree ahead of the 2035 modeled drop. The target’s cash lowered the entry price, but the deal still carries concentration risk.
